Week 7 : fundamental concepts
1. What is an estate?
Ownership rights exercised over land for a period of time
2. What two estates can exist at law? How do we know?
• Fee simple absolute in possession (‘fee simple’ or ‘freehold’) - no natural limits on the
use privileges that stem from the estate itself; the limits are lines drawn from outside
that concept, from public laws and from private agreement. A form of tenancy that
could be alienated or left as part of Inheritance.
• Term of years absolute (‘leasehold’ or ‘lease’) -
• Often held by farmers, for a term of years or a lifetime – argued not to be a form of
tenure (or a kind of estate) because it was still determined largely by contract. Short
leases become more common.
• tenant is “able to exercise the rights of an owner of land which is in the real sense his
land, albeit temporarily and subject to certain restrictions’. two requirements for the
existence of a lease:
• Exclusive possession - Only regarded as a possessor of the land.
• For a fixed or periodic term certain
There will usually be a rent, but this is not necessary.
3. What is an interest? How do we know?
A legal interest is a legal right over land which is effectively a complete, permanent and
absolute form of ownership
4. What are some differences between legal and an equitable interests?
Legal interests: Proprietary rights in law that do not confer exclusive possession.
Law of Property Act 1925 s1(2) lists the possible legal interests in land
• Created by a deed, signed and registered.
• Easements – a right or privilege to do something on someone else’s land. – right to light
• Profits a prendre – the right to take something from someone else’s land
• Rent charges
• Charges by way of legal mortgage – the right in property held by a mortgagee (e.g. a
bank)
• Rights of entry
, “All other estates, interests, and charges in or over land take effect as equitable interests.” -
Rights under trusts (beneficial interests). A trust arises anytime that land is co-owned
- Rights corresponding to a legal estate or legal interest:
•Equitable lease
•Equitable easement
•Equitable charge (equitable mortgage)
•Estate contract
•Option to purchase
•Right of pre-emption
If law is going to be unfair – use equity to get what you want. If multiple people have interest in
land.
5. How are interests in registered title ordinarily protected?
Minor interests
• These must be protected by entry on the register. Includes both legal and equitable
interests. Minor interests can be entered on the register by way of a ‘notice’. These
include:
• Leases for more than three years
• Equitable leases
• Contracts to grant a lease
• Equitable easements and profits
• Restrictive covenants
Overriding interests are interests, both legal and equitable, that will bind a successor in title
even if they have not been registered e.g. Short leases (i.e. not exceeding seven years), implied
or prescriptive legal easements and profits.
• Registration is title – become the owner, exchange contracts, deed, failure to register,
only equitable part
• Registrable dispositions (freeholds and leaseholds (7+ years) receive own title number,
some interests express legal easements and legal charges must be registered to be
1. What is an estate?
Ownership rights exercised over land for a period of time
2. What two estates can exist at law? How do we know?
• Fee simple absolute in possession (‘fee simple’ or ‘freehold’) - no natural limits on the
use privileges that stem from the estate itself; the limits are lines drawn from outside
that concept, from public laws and from private agreement. A form of tenancy that
could be alienated or left as part of Inheritance.
• Term of years absolute (‘leasehold’ or ‘lease’) -
• Often held by farmers, for a term of years or a lifetime – argued not to be a form of
tenure (or a kind of estate) because it was still determined largely by contract. Short
leases become more common.
• tenant is “able to exercise the rights of an owner of land which is in the real sense his
land, albeit temporarily and subject to certain restrictions’. two requirements for the
existence of a lease:
• Exclusive possession - Only regarded as a possessor of the land.
• For a fixed or periodic term certain
There will usually be a rent, but this is not necessary.
3. What is an interest? How do we know?
A legal interest is a legal right over land which is effectively a complete, permanent and
absolute form of ownership
4. What are some differences between legal and an equitable interests?
Legal interests: Proprietary rights in law that do not confer exclusive possession.
Law of Property Act 1925 s1(2) lists the possible legal interests in land
• Created by a deed, signed and registered.
• Easements – a right or privilege to do something on someone else’s land. – right to light
• Profits a prendre – the right to take something from someone else’s land
• Rent charges
• Charges by way of legal mortgage – the right in property held by a mortgagee (e.g. a
bank)
• Rights of entry
, “All other estates, interests, and charges in or over land take effect as equitable interests.” -
Rights under trusts (beneficial interests). A trust arises anytime that land is co-owned
- Rights corresponding to a legal estate or legal interest:
•Equitable lease
•Equitable easement
•Equitable charge (equitable mortgage)
•Estate contract
•Option to purchase
•Right of pre-emption
If law is going to be unfair – use equity to get what you want. If multiple people have interest in
land.
5. How are interests in registered title ordinarily protected?
Minor interests
• These must be protected by entry on the register. Includes both legal and equitable
interests. Minor interests can be entered on the register by way of a ‘notice’. These
include:
• Leases for more than three years
• Equitable leases
• Contracts to grant a lease
• Equitable easements and profits
• Restrictive covenants
Overriding interests are interests, both legal and equitable, that will bind a successor in title
even if they have not been registered e.g. Short leases (i.e. not exceeding seven years), implied
or prescriptive legal easements and profits.
• Registration is title – become the owner, exchange contracts, deed, failure to register,
only equitable part
• Registrable dispositions (freeholds and leaseholds (7+ years) receive own title number,
some interests express legal easements and legal charges must be registered to be
